Two possums come into our front yard every night. They eat insects, take a drink from our cats’ outside water dish, and then move on to our neighbor’s yard. They work for free, remove bugs from our flowerbeds, and never make any noise. Our family likes them, and I think anyone who doesn’t just doesn’t understand possums.
Another misunderstood animal is the speculator. We’re told they’re evil “price gougers.” But speculators, like possums, take care of problems for us without being asked. When there’s a shortage of something, speculators buy a lot of it and then sell their inventory over time at the going price. This way, they ensure we have continued availability of things in short supply. It may cost more, but at least it’s available. When speculators don’t get involved, people hoard things and the supply completely dries up – – as in the case of toilet paper most recently. There were no speculators investing in toilet paper and, for quite a while, none has been available at any price.
When speculators engage in so-called “price gouging,” the press screams about it and business responds by making and selling more of the scarce goods. This increases the supply, which brings down the price. A good example is the My Pillow® company we see on TV. They’ve stopped making pillows in favor of making surgical masks they are selling at low prices. The speculators’ activity signals business to get busy and make more products in short supply.
The bottom line is that speculators make sure we have scarce goods until business can catch up and make more. I understand speculators because I have a degree in economics magna cum laude. It isn’t that hard once someone explains it. But the press never explains speculators’ real function. The press just whips up public sentiment with half-truths (or no truths) because that’s what the press does.
Another misunderstood animal is the lobbyist. Our firm has a terrific one in Washington, D.C. Everyone loves her. She’s pleasant and calm and always delivers straight facts to government officials. A lobbyist who doesn’t tell the truth isn’t going to last very long. She’s been doing this over 20 years. Right now, she’s working on two coronavirus cases for us.
Our client sells nuts and raisins in supermarket bins throughout the U.S. Consumers open the bin, scoop the product into unmarked bags, and have it weighed at the checkout stand. Government is telling my client they can’t sell that way during the coronavirus crisis. Problem is, people are losing their jobs and my client’s bins are the cheapest way to get these products to the public. Our lobbyist is talking to FDA about putting clear, sealed 1-pound bags of nuts or raisins in the bins until the crisis is over. This normally isn’t allowed unless labels are put on the bags, which would raise the cost at a time when people who need these products are short on cash. Our lobbyist, as part of The Food Lawyers, is working in Washington, D.C. to develop a short-term fix that gets low-priced food to people who want and need it. The press never talks about lobbyists doing this kind of work.
She’s also working on obtaining an import duty waiver for another of our clients who’s having trouble getting canned seafood from China due to tariffs on Chinese goods. Our client’s inventory has been wiped out in the last two weeks. Once again, our lobbyist is working to make reasonably priced high-quality food available to the public during a crisis.
Lobbyists get a bad rap from the press, because that’s what the press does. But our lobbyist is doing great things – – making sure the food supply serves those that need it. We arm her with the facts and the law, and then she works her magic.
Are all speculators and lobbyists saints? No, but those that don’t play fair don’t last very long. Their reputation gets around and pretty soon the people they need to work with just won’t deal with them.
Why doesn’t the press or politicians set the record straight? Simple. It’s easier to tell a convenient lie than a hard truth. Anyone who would explain that speculators don’t cause high prices, they react to them, will be denounced as a charlatan and an opportunist. “No one is more hated than one who speaks the truth.” – – Plato
So, the next time you meet a speculator or a lobbyist, you’ll be in the minority that knows they perform an important role when times are tough. And just like the possums in my front yard, their role is usually misunderstood.